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MKT 202 NHSU

Trap-Ease America: The Big Cheese of compared with


Mousetraps traditional spring-
loaded traps or
BACKGROUND
poisons.
A group of investors had formed Trap-Ease Consumers could
America in January after it had obtained use it safely and
worldwide rights to market the innovative easily with no risk
mousetrap. In return for marketing rights, of catching their
the group agreed to pay the inventor and fingers while
patent holder, a retired rancher, a royalty loading it. It posed
fee for each trap sold. The group then hired no injury or
Martha to serve as president and to develop poisoning threat to
and manage the Trap-Ease America children or pets.
organization. Furthermore, with
Trap-Ease,
Trap-Ease America contracted with a consumers
plastics-manufacturing firm to produce the avoided the unpleasant “mess” they often
traps. The trap consisted of a square, encountered with the violent spring-loaded
plastic tube measuring about 6 inches long traps. The Trap-Ease created no “clean-up”
and 1-1/2 inches in diameter. The tube bent problem. Finally, the user could reuse the
in the middle at a 30-degree angle, so that trap or simply throw it away.
when the front part of the tube rested on a
flat surface, the other end was elevated. Martha’s early research suggested that
The elevated end held a removable cap into women were the best target market for the
which the user placed bait (cheese, dog Trap-Ease. Men, it seemed, were more
food, or some other aromatic tidbit). The willing to buy and use the traditional, spring-
front end of the tube had a hinged door. loaded trap. The targeted women, however,
When the trap was “open,” this door rested did not like the traditional trap. These
on two narrow “stilts” attached to the two women often stayed at home and took care
bottom corners of the door. (See Exhibit 1.) of their children. Thus, they wanted a
means of dealing with the mouse problem
The simple trap worked very efficiently. A that avoided the unpleasantness and risks
mouse, smelling the bait, entered the tube that the standard trap created in the home.
through the open end. As it walked up the
angled bottom toward the bait, its weight To reach this target market, Martha decided
made the elevated end of the trap drop to distribute Trap-Ease through national
downward. This action elevated the open grocery, hardware, and drug chains such as
end, allowing the hinged door to swing Safeway, Kmart, Hechingers, and CB Drug.
closed, trapping the mouse. Small teeth on She sold the trap directly to these large
the ends of the stilts caught in a groove on retailers, avoiding any wholesalers or other
the bottom of the trap, locking the door middlemen.
closed. The user could then dispose of the
The traps sold in packages of two, with a
mouse while it was still alive, or the user
suggested retail price of $2.49. Although
could leave it alone for a few hours to
this price made the Trap-Ease about five to
suffocate in the trap.
ten times more expensive than smaller,
Martha believed the trap had many standard traps, consumers appeared to
advantages for the consumer when offer little initial price resistance. The

Principles of Marketing
14 E
MKT 202 NHSU

manufacturing cost for the Trap-Ease, Martha knew that the investor group
including freight and packaging costs, was believed that Trap-Ease America had a
about 31 cents per unit. The company paid “once-in-a-lifetime chance” with its
an additional 8.2 cents per unit in royalty innovative mousetrap, and she sensed the
fees. Martha priced the traps to retailers at group’s impatience with the company’s
99 cents per unit (two units to a package) progress so far. She had budgeted
and estimated that, after sales and volume approximately $250,000 in administrative
discounts, Trap-Ease would produce net and fixed costs for the first year (not
revenue from retailers of 75 cents per unit. including marketing costs). To keep the
investors happy, the company needed to
To promote the product, Martha had
sell enough traps to cover those costs and
budgeted approximately $60,000 for the first
make a reasonable profit.
year. She planned to use $50,000 of this
amount for travel costs to visit trade shows Questions for Discussion
and to make sales calls on retailers. She
1. Martha and the Trap-Ease America
planned to use the remaining $10,000 for
investors believe they face a once-in-a-
advertising. So far, however, because the
lifetime opportunity. What information do
mousetrap had generated so much
they need to evaluate this opportunity? How
publicity, she had not felt that she needed to
do you think the group would write its
do much advertising. Still, she had placed
mission statement? How would you write it?
advertising in Good Housekeeping (after all,
the trap had earned the Good 2. Has Martha identified the best target
Housekeeping Seal of Approval) and in market for Trap-Ease? What other market
other “home and shelter” magazines. segments might the firm target?
Martha was the company’s only
salesperson, but she intended to hire more 3. How has the company positioned the
salespeople soon. Trap-Ease for the chosen target market?
Could it position the product in other ways?
Martha had initially forecasted Trap-Ease’s
first-year sales at five million units. Through 4. Describe the current marketing mix for
April, however, the company had only sold Trap-Ease. Do you see any problems with
several hundred thousand units. Martha this mix?
wondered if most new products got off to 5. Who is Trap-Ease America’s
such a slow start, or if she was doing competition?
something wrong. She had detected some
problems, although none seemed overly
serious. For one, there had not been
enough repeat buying. For another, she had
noted that many of the retailers upon whom
she called kept their sample mousetraps on
their desks as conversation pieces—she
wanted the traps to be used and
demonstrated. Martha wondered if
consumers were also buying the traps as
novelties rather than as solutions to their
mouse problems.

Principles of Marketing
14 E

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